Montana Education Savings Account (ESA): what families need to know

What is the Montana ESA program?

If your child has a disability and you've been looking for more flexibility in how you educate them, Montana's Education Savings Account program may be worth your attention. The ESA gives eligible families direct reimbursement for a range of educational expenses — from curriculum materials to online classes to tutoring — letting you build a learning plan that actually fits your kid.

The Montana Education Savings Account was established under HB 393 (now codified as Montana Code Annotated 20-7-17) and is run by the Montana Office of Public Instruction (OPI). It was designed for parents of children with disabilities who want greater flexibility in choosing how and where their child learns.

Unlike some state ESA programs that use a debit card or digital marketplace, Montana's ESA is a direct reimbursement program. Families pay for approved educational expenses out of pocket, then submit receipts to OPI for reimbursement.

Note on legal status: The program is currently operating under a legal stay granted in the case Montana Quality Education Coalition and Disability Rights Montana v. State of Montana, allowing it to continue through the end of the school year. Families already enrolled can continue participating. If you're considering applying, check the OPI website for current program status before submitting.

Who is eligible?

The Montana ESA is specifically for children with disabilities as defined under the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1400. To qualify, a student must meet all of the following criteria:

• Is identified as a "child with a disability" under IDEA
• Is between the ages of 5 and 19 as of September 10 of the current school year
• Is not enrolled in a school serving youth in Department of Corrections programs or the Montana School for the Deaf and Blind
• Was enrolled in a Montana public school during the previous school year and counted for ANB (Average Number Belonging) funding purposes — or is eligible to enter kindergarten, or did not reside in Montana the previous school year

504 plans do not qualify. The program requires an IDEA disability designation, typically documented through an IEP or evaluation report completed by the resident school district. Once enrolled in the ESA, students cannot simultaneously attend a Montana public school full-time. Parents must formally unenroll their child and register them as a homeschool student.

How do families apply?

Applications open twice a year through the OPI website:

• Spring window: May 1 through June 1
• Fall window: November 1 through December 1

Paper applications are available upon request at OPIESA@mt.gov. Along with the application, you'll need to submit copies of your child's disability qualification documents (evaluation report, IEP, or private-place service plan), signed by all parties, plus two proofs of Montana residency. OPI notifies families within 30 days of each window closing. If approved, you'll receive a contract to review and sign. A separate application is required for each student.

Questions can be directed to Whitney Williams, ESA Specialist, at OPIESA@mt.gov or 406-444-3408.

How much funding do families receive?

The amount each family receives is determined by the ANB formula and varies by school district. OPI publishes a table of student amounts by district each school year on the ESA website — search for "Education Savings Account: SY 2025-2026 Student Amounts" to find your district's figure. The final student amount is adjusted down by 5% to cover OPI's administrative costs, as required by state law.

What can ESA funds be used for?

Montana's ESA covers a broad range of educational expenses. Per the OPI's official allowable expenses document (Version 2, October 2024), families can seek reimbursement for:

• Qualified school tuition, fees, textbooks, software, and other instructional materials or services
• Electronic educational programs, online courses, and distance learning programs
• Curriculum materials
• Tutoring
• Educational therapies including occupational, behavioral, physical, speech, and audiology therapy — from a licensed or certified provider
• State or nationally recognized assessment tests, AP exams, and post-secondary entrance exams
• Services provided by a Montana public school, including classes and extracurricular activities
• Post-secondary institution tuition, books, online courses, or certain fees
• Up to $50 per year in consumable educational supplies (paper, pens, markers)
• Transportation required to access another allowable educational service, reimbursed at the federal mileage rate ($0.67/mile)
• Fees for a cooperative educational program

Credential note for therapies: If you plan to use ESA funds for occupational, speech, behavioral, physical, or audiology therapy, the provider must be licensed or certified. General tutoring and online educational programs do not carry the same credential requirement under the allowable expenses document.

Expenses that are not covered include entertainment, primarily noneducational devices (televisions, video game consoles), day care fees, gift cards, groceries, lodging, medical services, vitamins and supplements, and non-educational therapies such as acupuncture, dental care, or massage therapy.

How reimbursements work

Montana's ESA uses a monthly reimbursement cycle. Here's how it works step by step:

1. Pay out of pocket. Purchase the educational expense — a tutoring session, online class, curriculum materials, etc.
2. Collect your receipts. Each receipt must include vendor details, purchase date, and proof of payment.
3. Submit the reimbursement form. The online form is on the OPI ESA website. Submit by the 25th of each month.
4. Receive payment. Requests submitted by the 25th are processed after the 10th of the following month via electronic funds transfer (EFT).

Mileage reimbursements follow the same cycle. You'll need starting and ending locations, total miles, date(s) of travel, and reason for travel. OPI verifies all mileage using MapQuest. Funds are deposited in equal payments distributed through August and June over the school year.

To receive EFT payments, you'll need to complete a Department of Administration Electronic Funds Transfer form (Form 204) at contract signing, along with a voided check or direct deposit form from your bank.

Using Outschool with Montana's ESA

Montana's allowable expenses list explicitly includes online educational programs and distance learning programs — and tutoring qualifies as well. That means classes and tutoring sessions on Outschool are reimbursable under the program.

Since Montana uses a direct reimbursement model, the process for Outschool purchases works like this:

1. Book and pay for the class directly through Outschool
2. Save your receipt (Outschool sends a confirmation email with purchase details)
3. Submit the receipt through OPI's reimbursement form by the 25th of the month

Outschool offers online tutoring for kids with special needs, ADHD-focused tutoring, autism tutoring classes, dyslexia support, and executive function coaching — among thousands of other classes. Small class sizes and flexible scheduling make it a strong fit for kids who learn best outside the traditional classroom structure.

No prior approval is needed to purchase Outschool classes — just keep your receipt and submit it through OPI's portal by the monthly deadline.

Frequently asked questions

Does my child need an IEP to qualify for the Montana ESA?

Your child needs to be identified as having a disability under IDEA — which typically means an IEP or evaluation report from the resident school district. Students with only a 504 plan do not qualify for this program.

Can I use Montana ESA funds for Outschool?

Yes. Electronic educational programs and distance learning programs, as well as tutoring, are explicitly listed as allowable expenses under Montana's ESA. Outschool qualifies under both categories. Families pay upfront and submit receipts to OPI for reimbursement. No pre-approval is required.

Can my child still access some public school services while in the ESA?

Students enrolled in the ESA cannot be enrolled full-time in a Montana public school simultaneously. However, the allowable expenses list includes services provided by public schools — such as extracurricular activities — so some partial access may be possible. Contact OPI at OPIESA@mt.gov to confirm what applies to your situation.

Does the tutor need to be certified?

For general tutoring, no certification is required under the official allowable expenses document. Educational therapies — occupational, speech, behavioral, physical, and audiology — must come from a licensed or certified provider.

Do I need to reapply each year?

The program requires a signed contract with OPI for each school year. Check the OPI ESA website each year for any reapplication requirements or changes to the enrollment process.

What is the current status of the legal challenge?

The program is currently operating under a court-granted stay through the end of the school year. Monitor the OPI ESA website for updates on program status, particularly before applying for a new school year.

Program details, eligibility requirements, and allowable expenses may change. Visit the Montana ESA page at the Office of Public Instruction for the most current information.